Unsecured debt consolidation loans allow consumers to reduce their monthly payments and pay off debt faster. By consolidating credit card debt into one loan at a lower interest rate debt can be easily managed.
There are many types of debt consolidation loans on the market. An unsecured loan requires no up front collateral and can be obtained online, without a bank.
Consumers have been using social lending services to consolidate credit card debt. Peer to peer lending services offer unsecured personal loans at much lower rates than can be found at a bank. Anyone with good credit can qualify for debt consolidation loans using social lending.
Using social lending to consolidate loans is a unique option that has recently become available but it growing in popularity. The service connects potential individual investors who can fund personal loans with as little as $25. The loan interest rate is paid directly to the investor and a small percentage is taken by the service.
Who can qualify for Unsecured Debt Consolidation Loans?
Most consumers with good credit can qualify for unsecured loans online. Typically peer to peer lending services offer unsecured personal loans to consumers with a credit score of 670 or greater.
Why are debt consolidation loans a smart choice for consumers?
When credit card debt gets out of hand a debt consolidation can be a great option to easily manage monthly payments. Rather than defaulting on unsecured lines of credit, consumers can proactively reduce their monthly payments. Debt consolidation loans offer a lower interest rate than can be found with credit cards.
In contrast to secured lines of credit which require the collateral of a house, you can sleep soundly knowing that the bank can’t take your home if you default on an unsecured debt consolidation loan. Another aspect of consolidation loans that smart consumers appreciate is that it will not affect their credit score. Debt consolidation is about improving ones credit rating and making positive steps towards the future.
What are the benefits of Unsecured debt consolidation loans?
Consumers have found great benefits in unsecured consolidation loans. The primary benefit being a lower monthly payment and a reduced interest rate. Peer to peer lending sites can offer low interest rates on personal loans because they have eliminated the high costs typically associated with traditional bank loans.
Consolidating multiple credit cards into one unsecured loan can offer more simplicity to the consumer. With only one monthly payment as opposed to several, getting out of debt can be a stress free experience. Social lending services offer loans in 3 and 5 year terms to help spread out the payments. Unsecured consolidation loans are simple to set up and easy to maintain. They have lower fees and will not require the help of a debt counselor or 3rd party.
Where can I get an unsecured debt consolidation loan?
The process of getting a debt consolidation loan begins by filling out an application and waiting for approval.
A consolidation loan is the first step to eliminating debt and reducing monthly credit card payments. It can take a lifetime to pay off credit card debt by only paying the minimum payment. With a debt consolidation loan monthly payments are dramatically smaller and a debt free life is just around the corner.